Enabling Local Fiscal Capacity through Business Formalization

Lessons from Colombia

Metaketa researchers: Darin Christensen, Francisco Garfias

Geographical region: Latin America and the Caribbean

Project country: Colombia

Case study question: Does providing information and an offer to assist formalizing increase formalization?

Edited by: Jaclyn Leaver

The Metaketa Initiative is a collaborative research model with a mission to improve knowledge about critical governance issues through rigorous field experiments. In each Metaketa “round,” the initiative coordinates multiple studies on a specific topic or intervention in a variety of countries and contexts.

As part of our efforts to share the results and policy impacts from the Metaketa Initiative, we’ve put together a series of Stories of Change. These stories share case studies that highlight new approaches and interventions used by Metaketa researchers and implementing partners.

Here we share the story of an experiment in Colombia to evaluate whether direct outreach to micro and small enterprises increases formalization rates in businesses. This study is part of the second Metaketa round, which focused on formalization, taxation, and public services.